scholarly journals Power Market Equilibrium under the Joint FIP-RPS Renewable Energy Incentive Mechanism in China

2019 ◽  
Vol 11 (18) ◽  
pp. 4964
Author(s):  
Cai ◽  
Chen ◽  
Dong ◽  
Li ◽  
Lin ◽  
...  
Keyword(s):  
Renewable Energy ◽  
Incentive Mechanism ◽  
Financial Burden ◽  
Research Work ◽  
Energy Transition ◽  
Transitional Period ◽  
Chinese Government ◽  
Renewable Portfolio Standard ◽  
Renewable Energy Consumption ◽  
The Government

In order to support the development of renewable energy, countries around the world have adopted certain renewable energy incentive mechanisms, including feed-in tariff (FIT) and renewable portfolio standard (RPS). Based on the official report concerning renewable energy consumption issued by the Chinese government in 2018, FIT is no longer an ideal renewable incentive mechanism for China. The increasing financial burden of renewable subsidies on the government has prompted a transition from FIT to a more market-based RPS mechanism. However, the abrupt transformation from FIT to RPS without any transitions might potentially cause problems, including a lack of incentives for market participants and a high market risk. Feed-in premium (FIP), which is a transformation based on FIT, can increase the flexibility of the mechanism and play an important role in the transitional period. However, to date, there has only been limited research work that has explored the effect of implementing FIP-RPS in the development of renewable energy in China. It is still not clear how this transition could be carried out smoothly. Therefore, this research was aimed to devise a joint FIP-RPS mechanism and further develop the optimal combination ratio of the two, so as to obtain a socially optimal mechanism design. The simulation results showed that, at different stages of renewable energy development, FIP and RPS should be implemented according to their distinct characteristics, and the joint FIP-RPS mechanism should be combined with different ratios. It could be indicated that the proposed joint FIP-RPS mechanism not only excels at promoting renewable energy, but is also capable of maintaining desirable market prices and social welfare in this transitional period, as compared to FIP and RPS implemented alone. In the future, a certain degree of FIP-RPS implementations to this type of energy transition would be one of the preferred methods that could be implemented to have a considerable influence on China’s national energy plan. This is because the combination of the two mechanisms not only reduces the financial burden of the government, but also plays an active role in the renewable energy market.

Consumers’ heterogeneous preferences toward the renewable portfolio standard policy: An evaluation of Korea’s energy transition policy

2020 ◽  
pp. 0958305X2094946
Author(s):  
Jihee Lee ◽  
HyungBin Moon ◽  
Jongsu Lee
Keyword(s):  
Renewable Energy ◽  
Public Awareness ◽  
Energy Transition ◽  
Developed Countries ◽  
Public Acceptance ◽  
Renewable Portfolio Standard ◽  
Heterogeneous Preferences ◽  
The Government ◽  
Electricity Tariff ◽  
Energy Expansion

The low electricity tariff in Korea compared with other developed countries renders renewable energy expansion more challenging as its costs are higher than those of traditional power generation such as thermal and nuclear power. An increase in the electricity tariff is required to help the expansion of renewable energy and accelerate the energy transition. It is therefore necessary to understand public acceptance of the renewable portfolio standard (RPS) policies implemented by the Korean government to expand renewable energy. This study analyzes public’s heterogeneous preferences of renewable energy policies and identifies the determinants of people’s divided reactions to the policy. This study also forecasts the change in the degree of public acceptance of renewable energy expansion until 2030 and provides suggestions for the enhancement of public awareness and acceptance of the RPS plan. The simulation analysis shows that a sharp decline in the public’s acceptance rate is to be expected when the renewable energy expansion target becomes more challenging in 2025. The drastic change in acceptance is attributed to the electricity tariff spike. We conclude that the government should prepare to address the severe backlash from the public against the increase in electricity tariff to have a successful renewable energy policy.

scholarly journals Does Globalization Moderate the Effect of Economic Complexity on CO2 Emissions? Evidence From the Top 10 Energy Transition Economies

2021 ◽  
Vol 9 ◽  
Author(s):  
Kai He ◽  
Muhammad Ramzan ◽  
Abraham Ayobamiji Awosusi ◽  
Zahoor Ahmed ◽  
Mahmood Ahmad ◽  
...  
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Transition Economies ◽  
Carbon Emissions ◽  
Environmental Sustainability ◽  
Energy Transition ◽  
Cross Sectional ◽  
Economic Complexity ◽  
Long Run ◽  
The Government

The association between economic complexity (sophisticated economic structure) and carbon emissions has major implications for environmental sustainability. In addition, globalization can be an important tool for attaining environmental sustainability and it may also moderate the association between economic complexity and carbon emissions. Thus, this research examines the effects of economic complexity, economic growth, renewable energy, and globalization on CO2 emissions in the top 10 energy transition economies where renewable energy and globalization have greatly increased over the last 3 decades. Furthermore, this study also evaluates the joint effect of globalization and economic complexity on carbon emissions. Keeping in view the presence of slope heterogeneity and cross-sectional dependence in the data, this research utilized second-generation unit root tests (CIPS and CADF), Westerlund cointegration approach, and CS-ARDL and CCEMG long-run estimators over the period of 1990–2018. The results affirmed the presence of cointegration among the considered variable. Long-run findings revealed that globalization, renewable energy, and economic complexity decrease carbon emissions. Conversely, economic growth increases carbon emissions. Moreover, the joint impact of economic complexity and globalization stimulates environmental sustainability. Based on these findings, the government of these groups of economies should continue to expand the usage of renewable energy. They should also promote interaction with the rest of the world by adopting the policy of opening up.

scholarly journals The Power to Change: A Brief Survey of The Wind Power’s Technological and Societal Potential, Barriers to Use, and Ways Forward

2019 ◽  
Vol 1 (1) ◽  
pp. p11
Author(s):  
Helen Kopnina
Keyword(s):  
Renewable Energy ◽  
Wind Energy ◽  
Wind Power ◽  
Energy Supply ◽  
Fossil Fuels ◽  
Energy Transition ◽  
Low Carbon ◽  
Close Relationship ◽  
The Government ◽  
Carbon Dependency

With the effects of climate change linked to the use of fossil fuels, as well as the prospect of their eventual depletion, becoming more noticeable, political establishment and society appear ready to switch towards using renewable energy. Solar power and wind power are considered to be the most significant source of global low-carbon energy supply. Wind energy continues to expand as it becomes cheaper and more technologically advanced. Yet, despite these expectations and developments, fossil fuels still comprise nine-tenths of the global commercial energy supply. In this article, the history, technology, and politics involved in the production and barriers to acceptance of wind energy will be explored. The central question is why, despite the problems associated with the use of fossil fuels, carbon dependency has not yet given way to the more ecologically benign forms of energy. Having briefly surveyed some literature on the role of political and corporate stakeholders, as well as theories relating to sociological and psychological factors responsible for the grassroots’ resistance (“not in my backyard” or NIMBYs) to renewable energy, the findings indicate that motivation for opposition to wind power varies. While the grassroots resistance is often fueled by the mistrust of the government, the governments’ reason for resisting renewable energy can be explained by their history of a close relationship with the industrial partners. This article develops an argument that understanding of various motivations for resistance at different stakeholder levels opens up space for better strategies for a successful energy transition.

scholarly journals Investigating the Relationships between Renewable Energy Consumption, Socio-Economic Factors and Health: A PVAR Analysis from MENA Net Oil Importing Countries

2021 ◽  
Vol 14 (1) ◽  
pp. 151
Author(s):  
Mohamed Kadria ◽  
Sahbi Farhani ◽  
Yosr Guirat
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Environmental Policy ◽  
Good Governance ◽  
Economic Factors ◽  
Renewable Energy Consumption ◽  
The Government ◽  
The Impact ◽  
Socio Economic Factors

In this paper, we tried to contribute to the previous literature by analyzing the relationship between renewable energy consumption, socio-economic factors and health in the presence of a stringent environmental policy and lobbying power. Using a Panel Vector Auto-Regressive (PVAR) technique, we specifically examine the role of the government effectiveness and the lobbying pressure in moderating the impact of renewable energy consumption on CO2 emissions, economic growth and health factor considering the case of Middle East and North Africa (MENA) Net Oil Importing Countries (NOICs) from 1996 to 2019. Our analysis shows that (i) environmental policy stringency and good governance will induce a rise in the level of renewable energy consumption; (ii) lobbying power and interest groups discourage the renewable energy sector’s development since the add in economic growth of these economies is not oriented towards renewable energy projects; (iii) a rise in renewable energy consumption, perhaps generated by renewable energy policies, should favor the improvement of public health. Finally, the political implications of the findings are summarized and discussed.

scholarly journals Renewable Energy Transition Strategy for PT.CI to Reduce 50% Emission by 2030

2022 ◽  
Vol 05 (01) ◽  
Author(s):  
Enrico Yushardi Hamdani ◽  
Keyword(s):  
Renewable Energy ◽  
Energy Transition ◽  
Third Party ◽  
Investment Climate ◽  
Internal Factors ◽  
Transition Strategy ◽  
Industrial Estate ◽  
The Government ◽  
Energy Options ◽  
Power And Energy

The global and Indonesia energy trend is heading to process of transitioning from fossil fuel to renewable energy (decarbonization) in the purpose of reducing Green House Gas (GHG) effects. Industries as one of the biggest contributors of emission generator expected to participate in this effort, where fuel and electricity play significant roles in running the operation. Many businesses try to participate and state their commitment on this energy transition initiative by increasing the portion of renewable energy within their operation. Meanwhile, business have several uncertainties’ on how the renewable energy will be acquired and will this renewable energy options be available at the time they need it. Campur Plc. (CP) through its subsidiary in Indonesia, PT. Campur Ilmiah (PT. CI) has targeted the entity to reduce 50% of the emission by 2030 with the baseline of 2018, which align with corporate target of 46.2% of emission reduction globally. Uncertainties on achieving this target generated from external and internal factors, and not to forget how to sustainably maintain the achievement. The location of PT.CI in industrial estate need to be considered as limitation because the power and energy supply are regulated. The accessibility, availability and affordability of renewable energy are expected to be handled by the government, industrial estate or other third party in energy business, but the phasing and the achievement up to now has not shown a promising progress. As a business, PT.CI need to have a strategic planning on this energy transition to support the global target as well as shown a positive investment climate in Indonesia. There are four (4) scenarios has been developed and each of the scenarios are explored to identify alternative and possible strategies to still be able achieving the target and how the organization manage these changes. As the conclusion of this research, four (4) strategic imperatives are defined. This research also might be use as the reference of future planning for the similar industries that have the similar target and type of energy mix.

scholarly journals Does Renewable Energy Consumption Successfully Promote the Green Transformation of China’s Industry?

Energies ◽  
2020 ◽  
Vol 13 (1) ◽  
pp. 229
Author(s):  
Dongri Han ◽  
Tuochen Li ◽  
Shaosong Feng ◽  
Ziyi Shi
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Threshold Model ◽  
Energy Transition ◽  
Threshold Effect ◽  
Renewable Energy Consumption ◽  
Regional Energy ◽  
Economic Output ◽  
The Impact

The trade-off between economic growth and ecological improvement has always become an important and difficult issue for many countries, especially for developing countries. Due to a long-term extensive economic growth pattern, the regional resource allocation deviates from the optimal, especially the existence of energy misallocation, which hinders the maximization of economic output. Therefore, considering the characteristics and heterogeneity of resource endowments in different regions and increasing renewable energy consumption, that is, promoting energy transition, is it capable of sustainable development under China’s actual conditions? The exploration of the issue is a core step in the research of the impact of renewable energy on industrial green transformation. Based on the panel data of 30 regions in China from 2009 to 2016, this paper constructs a threshold model from the perspective of regional energy misallocation and empirically tests the nonlinear mechanism of renewable energy consumption to promote industrial green transformation. The results show that China’s energy allocation efficiency is low, there is a certain misallocation phenomenon, and the improvement effect in recent years is not satisfactory. Further, the relationship between renewable energy consumption and industrial green transformation is not a simple linear relationship, but a double threshold effect due to regional energy misallocation. In areas with severe energy misallocation, renewable energy consumption does not have a significant boost to industrial green transformation. Finally, this paper proposes the policy enlightenment of promoting industrial green transformation from the aspects of performance evaluation, market reform, and factor flow.

scholarly journals Risks of switching to renewable energy sources

2021 ◽  
Vol 101 ◽  
pp. 01010
Author(s):  
E.S. Romanova ◽  
A.A. Masalkova
Keyword(s):  
Climate Change ◽  
Renewable Energy ◽  
Fossil Fuels ◽  
Negative Impact ◽  
Renewable Energy Sources ◽  
Research Work ◽  
Energy Transition ◽  
Energy Sources ◽  
International Treaties ◽  
Carbon Dioxide Co2

This research work is devoted to the issue of studying the key risks of switching to renewable energy sources. The relevance of the topic of work is determined by the fact that, according to climatologists [5], climate change, which has a negative impact on the environment, is caused by the emission of greenhouse gases such as carbon dioxide (CO2). For this reason, measures to prevent or reduce greenhouse gas emissions are at the heart of the energy transition. International treaties such as the Kyoto Protocol and the Paris Agreement lay the foundations for global action to combat climate change and implement a fourth energy transition. The energy transition is characterized by a number of incentives and barriers. Despite the fact that there are many scenarios for the development of the global energy sector by 2050, the expected transformations of the energy market lead to a significant redistribution of the ratio of the shares of hydrocarbon sources and renewable energy sources [16]. The trend towards fossil fuels is on the rise. These transformations in the market are determined not only by the climate agenda, but also by the concept of sustainable economic development.

scholarly journals Macroeconomic Determinants of Renewable Electricity Technology Adoption in Thailand

2020 ◽  
Vol 2 (2) ◽  
pp. 99-111
Author(s):  
Jidapa Ungwanitban ◽  
Salah ud Din Taj
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Fossil Fuels ◽  
Energy Technology ◽  
Total Energy Consumption ◽  
Renewable Energy Consumption ◽  
Total Consumption ◽  
Renewable Energy Technology ◽  
The Government ◽  
The Impact

Renewable energy plays a significant role in mitigating C02 emission and boosts sustainable development. Initially, this study examines those factors which create hurdles in adopting renewable energy technology in Thailand. Later, this study examined the impact of renewable energy with other supporting variables on Thailand's total energy consumption. For this purpose, this study used 38 years of data from 1990 to 2018. Initially, the Augmented Dickey fuller test applied to verify the order of integration on indicators, and it confirms that there exists a unit order of integration. Then applied Johansen Cointegration, and it confirms that there are long-run relationships among trade openness, GDP, energy consumption (fossil fuels), financial development, and renewable energy consumption. Further applied Vector error correction model (VECM) to estimates the coefficients on indicators. Results confirm that openness to trade endorses the consumption of renewable energy in Thailand. However, the development of the economy and traditional energy resources creates hurdles to adapting renewable energy in Thailand. Renewable energy technology in Thailand did not significantly impact financial growth and development. After the research, the researcher advised the government of Thailand to adopt and implement the regulations and policies that maximize the magnitude of renewable energy and maximize the portion of renewable energy in total consumption of the overall energy consumption for the country Thailand.

scholarly journals Trade Openness and Urbanization impact on Renewable and Non-Renewable Energy Consumption in China

2021 ◽  
Author(s):  
Jiabin han ◽  
Muhammad Zeeshan ◽  
Irfan Ullah ◽  
Alam Rehman ◽  
Fakhr E Alam Afridi
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Trade Openness ◽  
Renewable Energy Consumption ◽  
Urbanization Effect ◽  
Energy Inputs ◽  
Negative Effect ◽  
Development Goals ◽  
The Government ◽  
Almost All

Abstract This study investigates the trade openness and urbanization effect on renewable and non-renewable energy consumption in China for the period 1990-2018. We apply the Quantile Regression technique for the analysis, our results show that trade significantly increases the non-renewable energy consumption in all quintiles while partially increases renewable energy consumption. This shows that trade activities in production and export commodities heavily rely on non-renewable energy inputs instead of renewable energy inputs. Urbanization affects non-renewable energy consumption only in three quintiles, while its effect is insignificant in most of the quintiles. Similarly, Urbanization does not affect renewable energy consumption as in almost all quantiles the coefficients are statistically insignificant. This implies that urbanization is one of the determinant of energy consumption in China. The empirical findings of this study suggest some policy recommendations; first, the government needs to implement certain regulations while expanding trade to minimize the negative effect of non-renewable energy consumption; besides government should provide incentives to industrial units and traders for using renewable energy which may help to attain long term sustainable development goals.

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